BKM CHAPTER 5 1. The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the (expected or realized) inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain. The Fisher equation relates nominal rates required by investors to real rates required by investors and inflation. You can think about this from two perspectives: i. Ex-ante
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Analytical tool An analytical tool is something used to analyze or "take a closer look at" something. It is normally a way to review the effectiveness of something. For example‚ Google offers a free web analytics tool that is used by Web Masters to track visitors on a given site. It allows Web Masters to see where visitors are coming from‚ how long they stay‚ what links they are reviewing‚ etc. Analytic Tool help with Tracking and Reports! Data flow diagram -A data flow diagram (DFD) is
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in questionnair is more than schedule. 2- Data representation of family expenditure using Pie Chart 3- X = X1*n1 + X2*n2 n1 +n2 where X = Combined arithmetic mean = 10.9 X1 = arithmetic mean of sample (1) = 10.4 and n1 = No. of sample (1) = 100 X2 = arithmetic mean of sample (1) = ? and n1 = No. of sample (2) = 150 So… 10.9 = 10.4 * 100 + X2 * 150 100 + 150 2725 = 1040 + X2 * 150 1685 = X2 * 150
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Content Approach I: “Dividend Discount Model” 3 (1) Dividend payout in 7 years 3 (2) Constant growth rate estimation 4 (3) Net earnings from same sector 11 (4) ROE for the companies in the same sample set 16 (5) Share price estimation by DDM 21 Approach II: “Valuation Multiple” 23 1) Price – earning ratio of each sector 23 2) Share price estimation by PE ratio 28 Reconciliation report 30 In this assignment‚ we are going to analyze 5 companies which are come from Banking
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interest rate on debt. .045(1 - .38) = 2.8% Cost of Equity In order to find the cost of equity I used the CAPM approach. I used the yield on 20-year U.S. Treasuries as the risk-free rate‚ 5.74%. To estimate the market risk premium I used the arithmetic mean of 7.50%. I used Nike’s average beta‚ 0.80. .0574 + (.075 - .0574).8 = 7.1% WACC = KdWd(1 - T) + KeWe WACC = (.028 x .27) + (.071 x .73) = 5.9% Calculate WACC using market values: The weight of debt is calculated by adding the current
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A NEW APPROACH TO PORTFOLIO MATRIX ANALYSIS FOR STRATEGIC MARKETING PLANNING 1 2 Vladimir Dobrić ‚ Boris Delibašić Faculty of organizational science‚ vdobric@fon.rs 2 Faculty of organizational science‚ delibasic.boris@fon.rs 1 Abstract: Portfolio matrix is probably the most important tool for strategic marketing planning‚ especially in the strategy selection stage. Position of the organization in the portfolio matrix and it’s corresponding marketing strategy depends on the aggregation
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to do that‚ and one of those is that each letter except Z is assigned the numerical value that specifies its position in the alphabet. For example‚ the letter A is assigned the value of 1‚ B is 2 and so on. The letter Z‚ in order to use modular arithmetic later‚ will be assigned the value of 0. Therefore‚ if the plaintext is DEPAUW UNIVERSITY‚ then the corresponding series of numbers is 4‚ 5‚ 16‚ 1‚ 21‚ 23‚ 21‚ 14‚ 9‚ 22‚ 5‚ 18‚ 19‚ 9‚ 20 and 25 (the space is omitted). In order to create a plaintext
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Financial Management Agenda 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding
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Individual solid particles are characterised by their size‚ shape‚ and density. 1.1 Particle shape The shape of an individual particle is expressed in terms of the sphericity F s‚ which is independent of particle size. The sphericity of a particle is the ratio of the surface-volume ratio of a sphere with equal volume as the particle and the surface-volume ratio of the particle. For a spherical particle of diameter D p‚ F s =1; for a non-spherical particle‚ the sphericity is defined as Dp:
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THE 4-BIT ADDER SUBTRACTOR Introduction To be able to perform arithmetic‚ you must first be familiar with numbers. Therefore‚ although we give a few helping examples‚ this article is not about binary numerals. The main interactive circuit at the top of this page is an arithmetic circuit capable of performing both addition and subtraction on any two 4-bit binary numbers. The circuit has a Mode switch that allows you to choose between adding (M=0) and subtracting (M=1). To understand why this
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